Every healthcare specialist who is about to set foot on the entrepreneurial road faces approaching. The challenge of collating funding. Starting a hospital is a massive task. Investments have to be made into a plethora of things. Besides this, the site, the construction, the interiors, the team of experts, the medical equipment, the list goes on and on. If you have the finances to self-fund your venture then there is no issue.

If not, arranging fundraising for your dream venture may seem like a nightmare, especially for first-time entrepreneurs. There is very little cause to worry because healthcare is considered to be safe and a premium segment. Besides, if your plans and your reputation are flawless, many banks, private investors and financial organizations will be interestimg in your funding project.

However, you should be aware of the common mistakes made by inexperience healthcare entrepreneurs which can lead to a rejection by financial investors.

1. Weakly design business plan

Any aspiration is just a pipe dream unless you can give it shape on paper and give numbers to it. Before you can get assure financial funding, you have to pitch your idea in front of a panel of experts. The potential financial institute which will loan the funds. Your idea has to be pitch in the form of a well-curated business plan.

Your business plan should be base on hard facts and figures and should be well-research. It should give a comprehensive overview of your targets and goals and simultaneously contain a dissection of the project costs. However, the different milestones for example, breakeven, the estimate profits and the opportunities and threats in the segment. It should be meticulous and detailed to include the smallest core. If your business plan is failing or incomplete and it does not impress the investors. Therefore, they are likely to reject your proposal. 

2. Unrealistic predictions

Financers are not swayed by impractical expectations. Avoid inaccurate and unreasonable projections. Instead explain logically how you aim to achieve your goals in a time-bound manner, the market opportunities and your strategy for scaling up, expansion and growth. If your expectation of success and growth seem to be an over-exaggeration; the investors might be put off.

3. Bad credit history

The first thing that an investor will check up on is your credit history. Your CIBIL score is a three-digit number that measures your credit health. However, your credit health is impacted by your repayment history.Since, people with a flawed credit history are considered to be unsafe borrowers and liabilities and may face rejection.

4. Lack-covering team

Healthcare is a specialized, skilled, and sensitive segment. The reputation, qualifications, and experience of your team of experts carry a lot of weight with your potential investors. 

Therefore, be sure to discuss the educational qualifications, credentials, achievements, and awards of your team in detail.  If any physician on your panel does not have an updated license, it can be a deal-breaker and your proposal can get rejected.

5.  Weak communication

In today’s day projection and promotion work wonders. It is not just enough that your idea is good, you have to be able to sell it and this requires effective communication. Investors do not purely judge your pitch on the quality of your idea, your execution plan, and your implementation strategy.

Your communication has to be lucid and crystal clear and has to bring out confidence and trust in your potential investors. You should be able to answer questions assuredly. Many first-time health entrepreneurs hesitate or are vague in their communication. This can ruin their perception or create doubts in the minds of the potential investors and lead to a rejection.

Furthermore, fundraising for a hospital is an uphill task and involves the collation of piles of documents, the development of a sturdy business plan, and projecting future milestones. Even a small mistake in the presentation of this data can lead to a big rejection.

Hence, be sure to take expert guidance in this attempt. Consult Hospertz, a leading healthcare consultancy firm of India. Further with more than two decades of experience in this sphere. Hospertz can proficiently help you in completing all the necessary audits for your pitch so that you can focus on what you love doing the most, namely caring for your patients.